Introduction

In July 2025, the Digital Defence Report prepared by Microsoft raised an alarm that India is part of the top target countries in AI-powered nation-state cyberattacks with malicious agents automating phishing, creating convincing deepfakes, and influencing opinion with the help of generative AI (Microsoft Digital Defence Report, 2025). Most of the attention in the world has continued to be on the United States and Europe, but Asia-Pacific and especially India have become a major target in terms of AI-based cyber activities. This blog discusses the role of AI in espionage, redefining the threat environment of India, the reaction of the government, and what India can learn by looking at the example of cyber giants worldwide.

Understanding AI-Powered Cyber Espionage

Conventional cyber-espionage intends to hack systems, steal information or bring down networks. With the emergence of generative AI, these strategies have changed completely. It is now possible to automate reconnaissance, create fake voices and videos of authorities and create highly advanced phishing campaigns which can pass off as genuine even to a trained expert. According to the report made by Microsoft, AI is being used by state-sponsored groups to expand their activities and increase accuracy in victims (Microsoft Digital Defence Report, 2025). Based on SQ Magazine, almost 42 percent of state-based cyber campaigns in 2025 had AIs like adaptive malware or intelligent vulnerability scanners (SQ Magazine, 2025).

AI is altering the power dynamic of cyberspace. The tools previously needing significant technical expertise or substantial investments have become ubiquitous, and smaller countries can conduct sophisticated cyber operations as well as non-state actors. The outcome is the speeding up of the arms race with AI serving as the weapon and the armour.

India’s Exposure and Response 

The weakness of the threat landscape lies in the growing online infrastructure and geopolitical location. The attack surface has expanded the magnitude of hundreds of millions of citizens with the integration of platforms like DigiLocker and CoWIN. Financial institutions, government portals and defence networks are increasingly becoming targets of cyber attacks that are more sophisticated. Faking videos of prominent figures, phishing letters with the official templates, and manipulation of the social media are currently all being a part of disinformation campaigns (Microsoft Digital Defence Report, 2025).

According to the Data Security Council of India (DSCI), the India Cyber Threat Report 2025 reported that attacks using AI are growing exponentially, particularly in the shape of malicious behaviour and social engineering (DSCI, 2025). The nodal cyber-response agency of India, CERT-In, has made several warnings regarding scams related to AI and AI-generated fake content that is aimed at stealing personal information or deceiving the population. Meanwhile, enforcement and red-teaming actions have been intensified, but the communication between central agencies and state police and the private platforms is not even. There is also an acute shortage of cybersecurity talents in India, as less than 20 percent of cyber defence jobs are occupied by qualified specialists (DSCI, 2025).

Government and Policy Evolution

The government response to AI-enabled threats is taking three forms, namely regulation, institutional enhancing, and capacity building. The Digital Personal Data Protection Act 2023 saw a major move in defining digital responsibility (Government of India, 2023). Nonetheless, threats that involve AI-specific issues like data poisoning, model manipulation, or automated disinformation remain grey areas. The following National Cybersecurity Strategy will attempt to remedy them by establishing AI-government guidelines and responsibility standards to major sectors.

At the institutional level, the efforts of such organisations as the National Critical Information Infrastructure Protection Centre (NCIIPC) and the Defence Cyber Agency are also being incorporated into their processes with the help of AI-based monitoring. There is also an emerging public-private initiative. As an example, the CyberPeace Foundation and national universities have signed a memorandum of understanding that currently facilitates the specialised training in AI-driven threat analysis and digital forensics (Times of India, August 2025). Even after these positive indications, India does not have any cohesive system of reporting cases of AI. The publication on arXiv in September 2025 underlines the importance of the fact that legal approaches to AI-failure reporting need to be developed by countries to approach AI-initiated failures in such fields as national security with accountability (arXiv, 2025).

Global Implications and Lessons for India

Major economies all over the world are increasing rapidly to integrate AI innovation with cybersecurity preparedness. The United States and United Kingdom are spending big on AI-enhanced military systems, performing machine learning in security operations hubs and organising AI-based “red team” exercises (Microsoft Digital Defence Report, 2025). Japan is testing cross-ministry threat-sharing platforms that utilise AI analytics and real-time decision-making (Microsoft Digital Defence Report, 2025).

Four lessons can be distinguished as far as India is concerned.

• To begin with, the cyber defence should shift to proactive intelligence in place of reactive investigation. It is not only possible to detect the adversary behaviour after the attacks, but to simulate them in advance using AI.
• Second, teamwork is essential. The issue of cybersecurity cannot be entrusted to government enforcement. The private sector that maintains the majority of the digital infrastructure in India must be actively involved in providing information and knowledge.
• Third, there is the issue of AI sovereignty. Building or hosting its own defensive AI tools in India will diminish dependence on foreign vendors, and minimise the possible vulnerabilities of the supply-chain.
• Lastly, the initial defence is digital literacy. The citizens should be trained on how to detect deepfakes, phishing, and other manipulated information. The importance of creating human awareness cannot be underestimated as much as technical defences (SQ Magazine, 2025).

Conclusion 

AI has altered the reasoning behind cyber warfare. There are quicker attacks, more difficult to trace and scalable as never before. In the case of India, it is no longer about developing better firewalls but rather the ability to develop anticipatory intelligence to counter AI-powered threats. This requires a national policy that incorporates technology, policy and education.

India can transform its vulnerability to strength with the sustained investment, ethical AI governance, and healthy cooperation between the government and the business sector. The following step in cybersecurity does not concern who possesses more firewalls than the other but aims to learn and adjust more quickly and successfully in a world where machines already belong to the battlefield (Microsoft Digital Defence Report, 2025).

References:

• Microsoft Digital Defense Report 2025
• India Cyber Threat Report 2025, DSCI 
• Lucknow based organisations to help strengthen cybercrime research training policy ecosystem 
• AI Cyber Attacks Statistics 2025: How Attacks, Deepfakes & Ransomware Have Escalated, SQ Magazine 
• Incorporating AI Incident Reporting into Telecommunications Law and Policy: Insights from India. ‍
• The Digital Personal Data Protection Act, 2023

Introduction

Charity and donation scams have continued to persist and are amplified in the digital era, where messages spread rapidly through WhatsApp, emails, and social media. These fraudulent schemes involve threat actors impersonating legitimate charities, government appeals, or social causes to solicit funds. Apart from targeting the general public, they also impact entities such as reputable tech firms and national institutions. Victims are tricked into transferring money or sharing personal information, often under the guise of urgent humanitarian efforts or causes.

A recent incident involves a fake WhatsApp message claiming to be from the Indian Ministry of Defence. The message urged users to donate to a fund for “modernising the Indian Army.” The government later confirmed this message was entirely fabricated and part of a larger scam. It emphasised that no such appeal had been issued by the Ministry, and urged citizens to verify such claims through official government portals before responding.

Tech Industry and Donation-Related Scams

Large corporations are also falling prey. According to media reports, an American IT company recently terminated around 700 Indian employees after uncovering a donation-related fraud. At least 200 of them were reportedly involved in a scheme linked to Telugu organisations in the US. The scam echoed a similar situation that had previously affected Apple, where Indian employees were fired after being implicated in donation fraud tied to the Telugu Association of North America (TANA). Investigations revealed that employees had made questionable donations to these groups in exchange for benefits such as visa support or employment favours.

Common People Targeted

While organisational scandals grab headlines, the common man remains equally or even more vulnerable. In a recent incident, a man lost over ₹1 lakh after clicking on a WhatsApp link asking for donations to a charity. Once he engaged with the link, the fraudsters manipulated him into making repeated transfers under various pretexts, ranging from processing fees to refund-related transactions (social engineering). Scammers often employ a similar set of tactics using urgency, emotional appeal, and impersonation of credible platforms to convince and deceive people.

Cautionary Steps

CyberPeace recommends adopting a cautious and informed approach when making charitable donations, especially online. Here are some key safety measures to follow:

1. Verify Before You Donate. Always double-check the legitimacy of donation appeals. Use official government portals or the official charities' websites. Be wary of unfamiliar phone numbers, email addresses, or WhatsApp forwards asking for money.
   
   
2. Avoid Clicking on Suspicious Links
   Never click on links or download attachments from unknown or unverified sources. These could be phishing links/ malware designed to steal your data or access your bank accounts.
   
   
3. Be Sceptical of Urgency Scammers bank on creating a false sense of urgency to pressure their victims into donating quickly. One must take the time to evaluate before responding.

4. Use Secure Payment Channels Ensure that one makes donations only through platforms that are secure, trusted, and verified. These include official UPI handles, government-backed portals (like PM CARES or Bharat Kosh), among others.
   
   
5. Report Suspected Fraud In case one receives suspicious messages or falls victim to a scam, they are encouraged to report it to cybercrime authorities via cybercrime.gov.in (1930) or the local police, as prompt reporting can prevent further fraud.
   

Conclusion

Charity should never come at the cost of trust and safety. While donating to a good cause is noble, doing it mindfully is essential in today’s scam-prone environment. Always remember: a little caution today can save a lot tomorrow.

References

• https://economictimes.indiatimes.com/news/defence/misleading-message-circulating-on-whatsapp-related-to-donation-for-armys-modernisation-govt/articleshow/120672806.cms?from=mdr
• https://timesofindia.indiatimes.com/technology/tech-news/american-company-sacks-700-of-these-200-in-donation-scam-related-to-telugu-organisations-similar-to-firing-at-apple/articleshow/120075189.cms
• https://timesofindia.indiatimes.com/city/hyderabad/apple-fires-some-indians-over-donation-fraud-tana-under-scrutiny/articleshow/117034457.cms
• https://www.indiatoday.in/technology/news/story/man-gets-link-for-donation-and-charity-on-whatsapp-loses-over-rs-1-lakh-after-clicking-on-it-2688616-2025-03-04 

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Introduction and Brief Analysis

A movie named “The Artifice Girl” portrayed A law enforcement agency developing an AI-based personification of a 12-year-old girl who appears to be exactly like a real person. Believing her to be an actual girl, perpetrators of child sexual exploitation were caught attempting to seek sexual favours. The movie showed how AI aided law enforcement, but the reality is that the emergence of Artificial Intelligence has posed numerous challenges in multiple directions. This example illustrates both the promise and the complexity of using AI in sensitive areas like law enforcement, where technological innovation must be carefully balanced with ethical and legal considerations.

Detection and Protection tools are constantly competing with technologies that generate content, automate grooming and challenge legal boundaries. Such technological advancements have provided enough ground for the proliferation of Child Sexual Exploitation and Abuse Material (CSEAM). Also known as child pornography under Section 2 (da) of Protection of Children from Sexual Offences Act, 2012, it defined it as - “means any visual depiction of sexually explicit conduct involving a child which includes a photograph, video, digital or computer-generated image indistinguishable from an actual child and image created, adapted, or modified, but appears to depict a child.”

Artificial Intelligence is a category of technologies that attempt to shape human thoughts and behaviours using input algorithms and datasets. Two Primary applications can be considered in the context of CSEAM: classifiers and content generators. Classifiers are programs that learn from large data sets, which may be labelled or unlabelled and further classify what is restricted or illegal. Whereas generative AI is also trained on large datasets, it uses that knowledge to create new things. Majority of current AI research related to AI for CSEAM is done by the use of Artificial neural networks (ANNs), a type of AI that can be trained to identify unusual connections between items (classification) and to generate unique combinations of items (e.g., elements of a picture) based on the training data used.

Current Legal Landscape

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The legal Landscape in terms of AI is yet unclear and evolving, with different nations trying to track the evolution of AI and develop laws. However, some laws directly address CSEAM. The International Centre for Missing and Exploited Children (ICMEC) combats Illegal sexual content involving children. They have a “Model Legislation” for setting recommended sanctions/sentencing. According to research performed in 2018, Illegal sexual content involving children is illegal in 118 of the 196 Interpol member states. This figure represents countries that have sufficient legislation in place to meet 4 or 5 of the 5 criteria defined by the ICMEC.

CSEAM in India can be reported on various portals like the ‘National Cyber Crime Reporting Portal’. Online crimes related to children, including CSEAM, can be reported to this portal by visiting cybercrime.gov.in. This portal allows anonymous reporting, automatic FIR registration and tracking of your complaint. ‘I4C Sahyog Portal’ is another platform managed by the Indian Cyber Crime Coordination Centre (I4C). This portal integrates with social media platforms.

The Indian legal front for AI is evolving and CSEAM is well addressed in Indian laws and through judicial pronouncements. The Supreme Court judgement on Alliance and Anr v S Harish and ors is a landmark in this regard. The following principles were highlighted in this judgment.

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• The term “child pornography” should be substituted by “Child Sexual Exploitation and Abuse Material” (CSEAM) and shall not be used for any further judicial proceeding, order, or judgment. Also, parliament should amend the same in POCSO and instead, the term CSEAM should be endorsed.
• Parliament to consider amending Section 15 (1) of POCSO to make it more convenient for the general public to report by way of an online portal.
• Implementing sex education programs to give young people a clear understanding of consent and the consequences of exploitation. To help prevent Problematic sexual behaviour (PSB), schools should teach students about consent, healthy relationships and appropriate behaviour.
• Support services to the victims and rehabilitation programs for the offenders are essential.
• Early identification of at-risk individuals and implementation of intervention strategies for youth.

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Distinctive Challenges

According to a report by the National Centre for Missing and Exploited Children (NCMEC), a significant number of reports about child sexual exploitation and abuse material (CSEAM) are linked to perpetrators based outside the country. This highlights major challenges related to jurisdiction and anonymity in addressing such crimes. Since the issue concerns children and considering the cross-border nature of the internet and the emergence of AI, Nations across the globe need to come together to solve this matter. Delays in the extradition procedure and irregular legal processes across the jurisdictions hinder the apprehension of offenders and the delivery of justice to victims.

CyberPeace Recommendations

For effective regulation of AI-generated CSEAM, laws are required to be strengthened for AI developers and trainers to prevent misuse of their tools. AI should be designed with its ethical considerations, ensuring respect for privacy, consent and child rights. There can be a self-regulation mechanism for AI models to recognise and restrict red flags related to CSEAM and indicate grooming or potential abuse.

A distinct Indian CSEAM reporting portal is urgently needed, as cybercrimes are increasing throughout the nation. Depending on the integrated portal may lead to ignorance of AI-based CSEAM cases. This would result in faster response and focused tracking. Since AI-generated content is detectable. The portal should also include an automated AI-content detection system linked directly to law enforcement for swift action.

Furthermore, International cooperation is of utmost importance to win the battle of AI-enabled challenges and to fill the jurisdictional gaps. A united global effort is required. Using a common technology and unified international laws is essential to tackle AI-driven child sexual exploitation across borders and protect children everywhere. CSEAM is an extremely serious issue. Children are among the most vulnerable to such harmful content. This threat must be addressed without delay, through stronger policies, dedicated reporting mechanisms and swift action to protect children from exploitation.

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References:

• https://www.sciencedirect.com/science/article/pii/S2950193824000433?ref=pdf_download&fr=RR-2&rr=94efffff09e95975
• https://aasc.assam.gov.in/sites/default/files/swf_utility_folder/departments/aasc_webcomindia_org_oi d_4/portlet/level_2/pocso_act.pdf
• https://www.manupatracademy.com/assets/pdf/legalpost/just-rights-for-children-alliance-and-anr-vs-s‍harish-and-ors.pdfhttps://www.icmec.org‍https://www.missingkids.org/theissues/generative-ai

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